- 11 - that were contained in that form provided: Step 2--Are you Exempt From Withholding?--You are exempt from withholding ONLY if: 1. Last year you did not have any Federal income tax liability; AND 2. This year you expect to have no Federal income tax liability. Important Change in the Law.--If you can be claim- ed as a dependent on another person’s tax return (for example, on your parent’s return), you may not be exempt. You cannot claim exempt status if you have any nonwage income, such as interest on savings, and expect your wages plus this nonwage income to add up to more than $500. If you are exempt, go to line 6 of Form W-4 and complete the appropriate boxes. Your exempt status will remain in effect until February 15 of the next year. If you still qualify for exempt status next year, complete and file a new form by that date. On June 28, 2000, Mr. Lawrence received a letter from petitioner in response to Mr. Lawrence’s June 20, 2000 letter.3 In that letter, petitioner stated: First let me say thank you for your assistance in my case. I have received your letter of June 20, 2000. Fortunately, I have found a copy of the 1987 W-4 Form and it is not the same as 1988 as you had assumed. As you will see, in Line 6, letter c it states, “If you entered “EXEMPT” on line 6b, are you a full-time stu- dent?” Additionally, I held the same job in 1987 and for at 3The letter that respondent received from petitioner on June 28, 2000, showed a date of June 16, 2000. However, we are convinced from that letter (1) that petitioner wrote it on a date after June 20 and before June 28, 2000, and (2) that petitioner mistakenly dated that letter June 16, 2000.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011